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Message
1
Posted on 8/12/24 at 12:21 pm to slackster
best yield plus performance
Posted on 8/12/24 at 12:29 pm to Granola
For me it's MO and O.
I've held both since 2013.
I've held both since 2013.
Posted on 8/12/24 at 1:30 pm to Drizzt
quote:
which usually means the companies are having trouble
This just isn’t true.
BDCs are not originating stressed/distressed type loans.
For the most part they are issuing loans to less than IG companies on a cash flow basis I.e. multiple of EBITDA as opposed to an asset basis. This is something the banks used to do much more but went away from it post GFC.
Additionally most BDCs are backing PE sponsor buyouts of private companies and providing the debt. Most of those companies are not having any trouble at all (quite the contrary) however BDCs get a higher rate bc PE is taking on a little more debt in order to increase returns.
Posted on 8/12/24 at 1:48 pm to Fat Bastard
Can anyone give a high level rundown on SVOL, first time hearing of the fund.
Posted on 8/12/24 at 3:29 pm to GREENHEAD22
quote:
SVOL's stated objective is to return one-fifth to three-tenths (-0.2x to -0.3x) the inverse of the VIX short-term futures index. However, there's a catch: one cannot directly sell short the VIX, as it is an index, not a tradable asset.
quote:
To circumvent this, SVOL employs a complex derivatives overlay. This involves primarily selling futures contracts, call options, and put options on VIX futures to mirror the inverse performance of the VIX.
LINK
i have this in my schwab account. my E-trade will let you trade/invest in it also. My vanguard will NOT allow you to buy this. They deem it too volatile as they got away from anything leveraged or inverse.
the dividends have been great and up until this last little drop there was not much price fluctuation allowing you to easily recoup any capital losses with the dividend reinvestment. get more shares cheaper then as price increases back to where it was you are golden. it may not be for everybody but i like it a lot.
LINK
This post was edited on 8/12/24 at 3:31 pm
Posted on 8/12/24 at 4:52 pm to Granola
quote:
best yield plus performance
Gotcha.
Does NVDA count?
Posted on 8/12/24 at 5:21 pm to Wraytex
quote:
Am I missing something on BDC's?
One thing to note is the tax treatment of dividends. 98.25% of ARCC 2023 dividends received ordinary income treatment, which can be anywhere from 10-20% higher taxes than qualified dividend income would be.
They’re also a total different risk profile than the “typical” dividend stock, but that’s largely true of anything yielding north of 6-7%.
This post was edited on 8/12/24 at 6:40 pm
Posted on 8/12/24 at 5:51 pm to Granola
My effective yield on AAPL is almost 4% and I'm up like 700%.
I suppose that qualifies as best dividend stock in my portfolio?
I suppose that qualifies as best dividend stock in my portfolio?
Posted on 8/12/24 at 6:20 pm to whodatigahbait
If Ares Capital is paying out a 9% dividend they are clearly charging a premium interest rate to these businesses. Maybe you think that means the business is doing well but they obviously aren’t able to access capital at a lower rate or they would. I don’t think Berkshire is paying 15% on a loan. I agree that most of these businesses take this type of loan because they think they’ll make money in the long term but I would still be cautious about heavily investing in these types of companies. Ares dropped to $3.60 in 2009 and $10 in 2020 from being a $20 stock in 2007…exactly where it is now.
Posted on 8/12/24 at 7:52 pm to Drizzt
quote:
Ares dropped to $3.60 in 2009 and $10 in 2020 from being a $20 stock in 2007…exactly where it is now.
Well a lot of companies had big drops in these time frames. But fundamentally you’re right. Ares is a pure dividend play. You’re not buying this with the expectation of appreciation.
Posted on 8/12/24 at 8:22 pm to Granola
MO…
Got in at the wrong price; but, have watched it grow significantly by reinvesting the dividends.
Got in at the wrong price; but, have watched it grow significantly by reinvesting the dividends.
Posted on 8/12/24 at 8:56 pm to Drizzt
Ares has an impressive track record and I believe is the biggest BDC out there. Also has a crazy fee structure (on this board at least) for the management company but it’s pretty standard for BDCs - 1.5% per year plus 20% of capital gains and 20% of returns over the 7% hurdle.
My problem is people go from buying PG or KO to these entities chasing yield without understanding the aggressive nature of the companies. Many were down over 90% when liquidity dried up in 2008-09. That’s relatively rare circumstances, sure, but this isn’t a consumer staple or something like that- it’s a company managing a portfolio of unrated debt.
My problem is people go from buying PG or KO to these entities chasing yield without understanding the aggressive nature of the companies. Many were down over 90% when liquidity dried up in 2008-09. That’s relatively rare circumstances, sure, but this isn’t a consumer staple or something like that- it’s a company managing a portfolio of unrated debt.
Posted on 8/12/24 at 9:02 pm to slackster
Exactly. It’s not bad necessarily but it’s much more vulnerable during a downturn than other dividend stocks and MLPs
Posted on 8/12/24 at 10:09 pm to Drizzt
I appreciate the info on BDC's and Ares.
Posted on 8/12/24 at 10:47 pm to Granola
UAN
Be aware this one comes with a K1 tax form which will delay your tax filing till late March at the earliest. It's also very difficult if you do taxes by hand (TurboTax is fine).
Be aware this one comes with a K1 tax form which will delay your tax filing till late March at the earliest. It's also very difficult if you do taxes by hand (TurboTax is fine).
This post was edited on 8/12/24 at 10:51 pm
Posted on 8/13/24 at 4:08 am to Fat Bastard
quote:
Does SVOL count?
My Brokerage wont let me buy this one. Go figure.
Posted on 8/13/24 at 10:34 am to FLObserver
Check out AMSF
Their dividend is reported incorrectly because their 4th dividend of the year is "special", and 10x the other 3. They basically dump all of the profits for the year into the last dividend.
Their dividend is reported incorrectly because their 4th dividend of the year is "special", and 10x the other 3. They basically dump all of the profits for the year into the last dividend.
Posted on 8/13/24 at 1:21 pm to FLObserver
quote:
My Brokerage wont let me buy this one. Go figure.
like i said. open a E-trade or Schwab account and you can buy it.
who do you use? fidelity? vanguard?
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